Essential GO Zone Financial Facts and Figures
Why Investing in American Real Estate in the GO Zone Makes Fiscal Sense
According to leading real estate investors in America, now that the United States is entering the lowest point in its property market cycle and people are getting more and more serious about selling off their real estate stock no matter how low they have to go, there are more opportunities than ever for those who can buy in and who want to profit over the long-term.
Furthermore, in a recent interview for Real Estate TV, multi-millionaire US real estate investment guru Robert Shemin pointed out that British and European buyers are in a particularly strong position to buy assets in the US for well below market value because of both the advantageous currency exchange position that they are in, and because vendors and developers in America are so keen to sell off stock.
incentives,
Therefore, if you are contemplating an entry into the US property market, the time has clearly never been better. In the majority of states you can buy in low thanks to the weakness of the dollar, and if you shop wisely you will find real estate for sale at below market value that will rent well over the long-term and deliver you solid returns.
However, nowhere is quite as attractive for today’s real estate investor as America’s GO Zone. The GO Zone is the Gulf Opportunity Zone that covers the Hurricane Katrina affected states such as Mississippi, Alabama and Louisiana, and where there are now exceptionally attractive government incentives for investors to purchase housing stock for rental to the awaiting displaced tenant demand.
According to Danny Silver, MD of Property Direct America and a sagacious commentator on the US housing market: “the US government passed legislation back in 2005 to make investing in the GO Zone as financially attractive as possible to rejuvenate affected communities, regenerate positive economic fundamentals and house those whose homes had been destroyed.
“Thanks to the overwhelming success of the legislation, jobs are being created, house prices are rising, demand for accommodation is increasing, affordability is improving and the economic conditions in the affected states are improving in spite of the state of the overall American economy.
“And in addition to the government’s attractive fiscal and taxation incentives to buy in and effectively house American citizens in the GO Zone, local developers are also competing against each other to make their developments more attractive to more investors meaning that investors who buy in now can walk away with some really profitable property.”
One of the most attractive and therefore successful developments as far as investors are concerned is Bayside Park in Biloxi.
As an investor buying in to this GO Zone incentive qualifying project you will be able to bag yourself a highly attractive deal and begin profiting from your property investment immediately. Here’s how: –
· You are buying property on land already subsidised by the US government therefore you are immediately buying a bargain at below market value because the developer is passing on their savings to buyers
· Property prices start from just £68,000 / $135,000
· To secure a property you need only pay $5,500 which is refundable if you change your mind, or which is used towards your closing costs…any additional closing costs are guaranteed to be met by the constructor saving you a potential maximum of $6,750 depending on the type of property you prefer
· If you move quickly you will be one of a limited number of international investors guaranteed a 90% mortgage by the developer’s private lender
· The mortgage is guaranteed as it is based on the property and not the investor, however there are only so many properties at Bayside Park that the lender will mortgage with these most favourable terms, so you need to register your interest immediately
· If you apply for the 90% mortgage option you need only find a 10% deposit!
· Your deposit is held in trust by the developer’s lawyer until you have signed the title deeds, therefore every element of your investment is secured
· By purchasing a property at Bayside Park and renting it to the awaiting tenant demand for at least three consecutive years, not only will you enjoy a strong rental income but the US government will give you a cheque for $36,500 per property you purchase. I.e., they will refund you 20% of the property’s purchase price as a golden ‘thank you’ for helping in the GO Zone
· Your mortgage interest, your property taxes, management fees and all expenses you incur directly relating to your property – from travel expenses to decorating costs – are totally tax deductible from all your rental income and profit
· You have a 50% depreciation bonus which can be carried forward for up to 15 years to further offset any taxation liability ensuring that you profit to the max on your Bayside Park property purchase
· Your property can be completed and bringing you a rental return on your investment in as little as 90 – 120 days
For more information about the fantastic financial incentives available, the 90% mortgage deals and the attractive properties for sale at Bayside Park, please contact Property Direct America on 0207 043 0792 or visit www.propertydirectamerica.com